| We have audited the accompanying standalone financial statements of NHC
Foods Limited ("the Company"), which comprise the Balance Sheet as at
March 31,2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that gives
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial control, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provision of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate Internal Financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditor's Report ) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the Directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements refer note 27 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts, which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditor's Report
(Referred to in Paragraph 1 under 'Report on Other Legal and Regulatory
Requirements section in our report of even date')
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) Fixed assets have not been physically verified by the management
during the year, hence, we are unable to comment on the discrepancies,
if any.
ii) a) The management has conducted physical verification of inventory
at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and its nature of business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verification.
iii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the, Companies Act, 2013 ("the Act"). Therefore
the requirement of clause 3 (iii) of the Order is not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services and fixed assets. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
v) The Company has not accepted any deposits from the public.
vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules prescribed by the Central Government for
the maintenance of cost records under sub-section (1) of section 148 of
the Companies Act and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However,
we have not made a detailed examination of the records.
vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing undisputed statutory dues in respect of
provident fund, employees state insurance, income-tax, sales tax,wealth
tax, service tax, value added tax, customs duty, excise duty, cess and
other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees
state insurance, income-tax, wealth tax, sales tax, service tax, value
added tax, customs duty, excise duty, cess and undisputed statutory
dues were in arrears as at March 31, 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, service tax, value added tax,
customs duty, excise duty and cess which have not been deposited with
appropriate authorities on account of any dispute except the following.
Name of the Statute Nature of the dues Amount (In Rs.)
Income Tax,Act, 1961 Tax Liability on 5,47,469
Regular Assessment
Central Excise Act,1962 Excise Duty 2,26,871
Name of the Statute Period to which the Forum Where dispute
amount relates is pending
Income Tax,Act, 1961 FY:1995-1996 ITAT has referred
back the case to
Assessing Officer
for further hearings
Central Excise Act,1962 FY: 1992-1995 Customs, Excise and
Service Tax
Appellate Tribunal
(c) According to the information and explanations given to us there
were no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there.
viii) The Company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses during the financial
year covered by audit and in immediately preceding financial year.
ix) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the banks. There were
no dues payable to financial institution and debenture holders.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Therefore the requirement of clause 3
(x) of the Order is not applicable.
xi) The company has not raised any term loan. Therefore the requirement
of clause 3 (xi) of the Order is not applicable.
xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For NGS & Co. LLP,
Chartered Accountants
Firm Registration No. 119850W
Ashok Trivedi
Partner
Membership No. 042472
Place: Mumbai
Date: 29th May, 2015
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